My husband and I are working through your book, but we are stuck at the superannuation chapter. We both work for the Queensland Government and have our super in the QSuper Lifetime Aspire fund. The fee is 0.9%, which is just above your recommended 0.85%. QSuper feels ‘safe’. If we changed to another fund, can we be sure we are guaranteed by the Government? Could we lose all our money?
Let me clear this up: you are not guaranteed by the Government if you lose all your money in super. (That only happens with money you have in the bank — see the question above.)
Instead, your superannuation fund is a trust, and the trustees of the fund are legally obliged to act in your best interests (as the Royal Commission has shown, some do a better job of this than others). QSuper appears to be doing a good job: they’re a not-for-profit industry fund that charges competitive fees, and they have a decent track record.
My advice would be to call up the fund and request to sit down with one of their advisors, and have them help you select the most appropriate asset mix within your current QSuper fund. Why? Well, a Vanguard study showed that 90% of your returns comes from the asset allocation you choose. Make that your focus.